Non-Household service expectations and views on Draft Determinations

We carried out this research to understand how business customers feel about their current water and sewerage services, and whether these meet their needs and expectations. Linked to their service expectations, we explored their views on the proposed changes to bills and improvements to services in the Draft Determinations that Ofwat published in July 2024. While business customers in England receive their retail services from retailers in the open water retail market, water companies continue to provide their water and sewerage services. The cost of delivering these services make up the bulk of charges that business customers pay, so Ofwat’s price determinations will impact businesses as much as households.

Our findings revealed there is a limited understanding of how the industry works but, overall, satisfaction with current water and sewerage services is high and expectations are generally being met. That said, there is also frustration with the water sector, which is recognised as being in need of major investment.

Businesses were likely to be less concerned about proposed bill increases where they feel more financially stable, and are pragmatic about the need to pay for investment. However, those who are less secure, or feel more anxious about the future, are more concerned about increases. Regardless of financial status, businesses were generally more negative about proposed increases in excess of 50%.

The research also highlighted the challenges of communicating complex information. Businesses struggled to understand some of the  areas of the research and, in some cases, felt they needed more information to help their understanding. We will work with the industry to ensure that such information is more accessible in the future, and also push for water companies to engage more with their business customers, and show what their money will be spent on.

We will use the findings from this research to help ensure that Ofwat’s Final Determinations reflect business customer expectations and experiences of current services, as well as working with retailers and water companies to increase support to those who may struggle with price increases.